New Zambian Kwacha

SIAVONGA/LUUSAKA, May 7 – The Times/XINHUA = THE Bank of Zambia (BOZ) has said the rebasing of the Kwacha will create more confidence in the money market and thereby improve the investor perception of the local economy.

And the Zambia Public Procurement Authority (ZPPA) is this week expected to review the evaluation of bids to announce the successful bidder. The Government is in the process of rebasing the Kwacha to address costs associated with an accumulated loss in value of the currency that undermined its basic function as a store of value, medium of exchange and measure of value.

BoZ currency rebasing manager Morris Mulomba said the rebasing of the Kwacha would lead to greater confidence in the currency because of perception of the national currency.

Mr Mulomba said during a seminar on the Kwacha rebasing progress in Siavonga that the loss of value was typically as a result of the high inflation rates over a prolonged period. He said the currency would bring more confidence because of fewer digits.

“It will create more confidence because we will be dealing with the currency with smaller digits and that in itself gives confidence that now the currency of respect and something that is going to be protected in terms of the value.

“This will also compel all of us whether it is the central bank or the Government to ensure that we maintain good macroeconomic conditions so that the zero doesn’t come back.

“Because of that commitment and demonstration by the Government, we are going to keep things stable and that will create extra confidence in the currency,” he said.

Mr Mulomba said as a result of rebasing, there would be minimised errors associated with the inputting of financial data and time spent by management to review such data. Rebasing of the Kwacha would not have any implication on the value against other convertible currencies such as the United States dollar.

BOZ also said the country’s rebased currency will not be bearing anyone’s portrait. Mulomba said the rebased currency will bear some new features to distinguish it from the old currency but that no portrait of an individual will be included.

The central bank is expected to announce the successful bidder for the printing and minting of the rebased currency this week.